Financing Voted To Buy, Remodel Former B&d Plant

May 22, 1986|The Morning Call

Tax-free financing of $2,525,000 was approved yesterday by Allentown Commercial and Industrial Development Authority for a partnership to purchase and remodel the former Black & Decker plant at 1801 S. 12th St., Allentown.

Francis Hoffman, managing partner of Queen City Business Center Associates, said the 272,000 square feet of space in the building will be converted for use by light industry, as offices and for warehousing.

He said the partnership, which includes Lawrence Bell, Robert Spillman and Robert McCann, plans to spend "upwards of $300,000 to improve the property and will start leasing as soon as the (acquisition) is closed."

The project's total cost is $2.6 million, with Merchants Bank submitting a letter of commitment to provide tax-free loans of $2 million and $525,000.

Hoffman "conservatively" estimated that within three years 150 persons will be employed in the building.

He said the developers are already talking to real estate agents and are preparing to hire a lead Realtor.

In a second case, the authority approved tax-free financing of $470,000 for the acquisition and improvement of a structure at 1227 Liberty St. for partial occupancy as the new base of operations for Werley Heating and Air Conditioning, currently located at 335 N. 7th St.

Clayton M. Werley told the authority, "We moved into the N. 7th Street property because our business was expanding. We are continuing our growth and now have 22 employed and 10 trucks out on the road."

He anticipates 30 new jobs will be created by the occupancy of other sections of the building at 1227 Liberty St., which "will be remodeled completely, inside and out."

He also feels the neighborhood will benefit from the remodeling of the structure.

Werley anticipates the total project will cost between $700,000 and $800,000.

Lehigh Valley Bank submitted a letter of commitment to provide the financing.

In other business, Judith McGough, authority executive director, told the members there will be a joint meeting June 11 with the Lehigh Valley Solid Waste Authority "probably in Bethlehem and probably in the evening."

The meeting will focus on preparing for settlement on the tax-free financing for constructing the solid-waste facility at Bethlehem's landfill site.

McGough said one problem is that more money is needed for the project than the state has approved for tax-free financing from the pool of left-over or uncommitted industrial development funds. She said the state may be asked for more money from the current year's funds.

The authority also agreed to serve as the city's agent in purchasing the former West End Branch of Conrail for about $420,000.

She said the city has a number of uses for the acreage obtained from the former railroad right-of-way, including selling some tracts to abutting property owners and using others to expand the city's parks system and to widen city streets.